What To Expect From Fox’s Q3 Earnings?
21st Century Fox (NYSE:FOX) is scheduled to announce its fiscal third quarter results on Wednesday, May 10. The company reported mixed fiscal second quarter results, as its earnings per share came in ahead of expectations but revenue missed. In Q2, Fox’s overall revenue increased 4% year-over-year (y-0-y) to $7.6 billion, driven by growth in both the Cable Networks and Television segments, partially offset by lower revenues reported in the Filmed Entertainment segment. In addition, Fox’s total segment earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to $1.9 billion, a 15% y-o-y increase from the prior year. From a bottom line perspective, the company reported adjusted income of $976 million, up 14% y-o-y, along with adjusted earnings of $0.53 per share, which increased 20% y-o-y.
In the third quarter, Fox will benefit from Fox News, which continued to see strong ratings in this quarter. These solid ratings could further help boost advertising revenues in the quarter. However, we expect lower revenues from the company’s filmed entertainment division, as there were few big titles released during the quarter compared to the quarter a year ago. Fox studio grossed more than $448 million in the March quarter at the U.S. box-office, much lower than $754 million in the prior year quarter.
Fox News Continues To See Strong Ratings
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Fox News had the best quarter in cable news history for 24-hour viewership, beating even the fourth quarter of 2016, which included the U.S. Presidential election. The news channel delivered the most watched quarter in total day viewers, representing a 27% y-o-y gain in overall viewership, and a 32% y-o-y growth among the key 25 to 54 year-old demographic. [1] In addition, Fox News also finished number one in both primetime and daytime measures. In primetime, the network grew 20% y-o-y overall for the quarter, along with 19% y-o-y growth in the key demo.
In the upcoming earnings, consensus estimates forecast revenues of $7.59 billion and earnings of $0.48 per share in the third quarter.
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